Senators Kristen Gillibrand and Cynthia Loomis are working together to create legislation that would clarify cryptocurrencies.
A meeting of legislators will take place on Thursday to study the regulation of cryptocurrencies in the future. Gillibrand said of the meeting: “The meeting will focus on an extensive study of all aspects of cryptocurrencies, and a time will be set for discussion with the Securities and Commodities Authority” to a clear regulatory law that includes all aspects. of digital currencies.
Who are Gillibrand and Loomis?
Gillibrand is a senior Democrat from New York state and Loomis is a Republican from Wyoming.
In the event that the parties managed to come up with a law to regulate dealing with digital currencies in the United States, while all previous attempts to establish laws to regulate digital currencies failed and were not completed.
Gillibrand stated their common goals with the new regulation: “Senator Loomis and I found that many of our goals are identical. Our priorities are safety, protecting consumer rights, and making sure markets are safe.”
State-specific federal agencies are currently responsible for monitoring cryptocurrency markets, and making matters worse is the growing interest in decentralized trading platforms, modern cryptocurrencies, and NFTs, as there is no clear law governing any of them. of the above.
“I can’t tell you how much Congress will change in the cryptocurrency industry as there is still a chance to introduce legislation to help and that is what Senator Gillibrand and I are trying to do,” Loomis said.
Wyoming has been trying to be a cryptocurrency hub since 2013 when it began buying bitcoin and fought a tax on cryptocurrencies in the $550 billion infrastructure bill signed by US President Joe Biden last year. past.
Earlier this month, President Joe Biden signed an executive order calling for a comprehensive review of cryptocurrency policies in the United States, emphasizing the importance of protecting investors, consumers, and national security.
In the Senate, a growing number of Democrats see crypto as a major concern in light of Russia’s war against Ukraine.
Led by Senator Elizabeth Warren of Massachusetts, 10 Democratic senators are introducing legislation giving the US Treasury the power to block cryptocurrency trading for Russian addresses and compel crypto investors to disclose transactions over $10,000.
While federal agencies have ruled out sanctions evasion by the Russian government through the $2 trillion crypto market, Loomis backed away from his concerns about sanctions evasion in crypto. Russia has the immediate ability to avoid the imposition of sanctions using digital currencies.”
A majority of lawmakers agreed to give greater authority to oversight of crypto markets, giving derivatives regulators greater influence in areas where Securities and Exchange Commission Chairman Gary Gensler has emphasized that his agency should take the lead in supervision.
The Senate said it planned to include language that would create a system for classifying cryptocurrencies as securities or commodities, noting that cryptocurrency markets tend to develop rapidly.
“I’m very optimistic that two senators have had a hard time finding things they don’t agree on,” Loomis said. “We hope to introduce a bill,” and lawmakers said they hope to introduce the bill in the next few weeks. weeks.